Fujitsu shares rise sharply after projecting 53% rise in fiscal-year net profit

The shares of Fujitsu Ltd. 6702,
+ 5.51%
rose sharply Monday morning after the company projected a 53% increase in net profit for the fiscal year and announced a share repurchase program.

Shares recently rose 4.5% to 19,530 yen after rising to 11% earlier.

Japan’s electronics and information technology services firm said Thursday after the market closed that it expected net profit to rise 53% to 280 billion yen ($ 2.16 billion) for the fiscal year which began in April. The operating profits of its IT services are expected to double, thanks to higher revenues and cost cuts.

Japanese markets were closed on Friday for a national holiday.

Fujitsu also announced a repurchase program that could repurchase up to 6.1% of its outstanding shares by the end of this fiscal year. Fujitsu said it could spend up to 150 billion yen on the program.

Fujitsu’s net profit fell 9.9% during the fiscal year ended March, with revenue down 0.1% to 3.587 trillion Y.

The Topix subscript for IT and communications companies was recently 0.9% lower and the Nikkei Stock Average NIK,
+ 0.12%
it was down 0.8%.

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